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How is a NOF in Michigan affected if we have incorrect date of when materials were first delivered?

Michigan

We are a material supplier. We may think that items will be delivered on a specific date, but with extended lead times/ shortages they are often not delivered on the date we originally thought. If we file a Notice of Furnishing with an incorrect date of first supplying materials, how does that affect the legality of the document? Thank you

3 replies

Apr 27, 2021
Hi there, much law is premised upon notice and opportunity to respond. The NOF let’s the owner (or owner’s designee; OD) know that a contractor, supplier, or laborer is working the project and expects payment so that the Owner / OD can properly monitor Sworn Statements when making periodic payments. The NOF preserves lien rights. Good faith mistakes can be corrected. Why not wait until sure of the date? Regards, John K. Robertson LAW OFFICE - CONTRACT ATTORNEY t: (248)943-7770 e: lawjkr@mac.com (TEXT FOR EXPEDITED RESPONSE)
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Apr 28, 2021

Short Answer: A Notice of Furnishing that incorrectly states the first date of furnishing, is off by a few days, won't hurt things if you're not paid and later have to record and enforce a construction lien. 

Under Michigan's Construction Lien Act, a person who does not have a direct contract with the Owner of the real property being improved must serve a Notice of Furnishing within 20 days after furnishing the first labor or material.  

So if delivery counts are your first date of furnishing, you have a 20 day cushion.  

Now keep in mind that delivery might be both your first and last date of furnishing. Unless your PO calls for check, test and start-up of the equipment, your obligations may end with delivery. I have no way of knowing what's in your PO. 

If delivery is both your first and last date of work, keep in mind that you have 90 days from your last date of furnishing labor or materials to record a construcion lien if you're not paid. 

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May 4, 2021
An incorrect date should not affect the NOF. The NOF is to give the property owner notice that subcontractors are working or supplying materials to the site. It only affects payments demanded by a general contractor after a NOF is presented so an incorrect date from the past should not matter. A owner can ask for a complete payment history to all subs and suppliers to ensure they have already been paid or issue a payment directly to the sub (or a 2 party check) if the payment is outstanding.
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